General Motors Co. and Stellantis NV are joining five other automakers to create a joint venture focused on beating Tesla Inc. as the leading high-powered electric-vehicle charging network in North America.
The collaboration that also includes BMW AG, Honda Motor Co. Ltd., Hyundai Motor Co., Kia Corp. and the Mercedes-Benz Group seeks to install at least 30,000 high-powered charge points fueled by renewable energy in urban and highway locations near amenities. The first U.S. stations will be made available starting in the summer of 2024 with the venture subject to customary closing conditions and regulatory approvals this year.
One of the largest obstacles to adoption of EVs, especially in the United States, is range anxiety and the lack of available convenient charging locations. There are 32,000 publicly available DC fast chargers in the United States for 2.3 million EVs, a ratio of 1:72, according to the U.S. Energy Department. The National Renewable Energy Laboratory estimates that the country will need 182,000 DC fast chargers to support up to 42 million plug-in vehicles on the road by 2030.
The stations installed by the JV will support two kinds of connectors: the Tesla-favored North America Charging Standard as well as the Combined Charging System that automakers like GM and Ford Motor Co. have been using. But those Detroit rivals recently have said they will adopt the NACS standard to give their customers access to Tesla’s Supercharger network with more than 12,000 chargers.
The new JV will leverage both public and private funds to build the multi-billion dollar network, though financial details aren’t being disclosed. The companies expect these investments will meet the requirements of the U.S. National Electric Vehicle Infrastructure program supporting the installation of 500,000 chargers in the United States.
Sites will be focused on highly trafficked routes in metropolitan areas, connecting corridors and vacation routes. Each will be equipped with multiple 350-kilowatt fast-charging DC stations. Where possible, the sites will offer weather-protected canopies and amenities such as restrooms, food service and retail operations either nearby or within the same complex. A select number of flagship stations will have additional amenities.
The network also will integrate with in-car systems for reservations, route planning and navigation, payment and energy management.
More details, including the name of the joint venture and how the charging locations will be branded, will come at a later date. Prices will be comparable and competitive to existing networks and be set independently by each mobility service provider.
“GM’s commitment to an all-electric future is focused not only on delivering EVs our customers love, but investing in charging and working across the industry to make it more accessible,” GM CEO Mary Barra said in a statement. “The better experience people have, the faster EV adoption will grow.”
During a roundtable with reporters on Wednesday, Stellantis CEO Carlos Tavares declined to specify whether Stellantis will adopt the North American Charging Standard for its EVs, saying it remains under consideration. The automaker last month launched its Free2move Charge brand focused on an ecosystem of charging solutions, including what it says will be the largest network of Level 2 charging stations in the United States.
Tavares previously has said Stellantis will rely on industry collaboration and third parties to expand charging infrastructure because creating its own network is expensive.
“It is in the best interest of the industry to support, promote anything that will bring a higher level of charging network density,” Tavares said Wednesday. “Increasing the charging network density will reduce range anxiety and will make the sale of EVs easier, and therefore, will improve the financials of selling EVs, because we’ll have more volume. People will pay for the EVs in a more natural way.”
He added that one EV plug standard has to be set to alleviate complexity and annoyance among consumers, but it also has to be done in a way that avoids charging networks becoming a marketing tool for competitors to steal away Stellantis customers.
“We want to protect the brand equity of everything we have,” Tavares said. “And at the same time, improving the convenience for the customer, which is giving the customer the possibility to access the highest possible charging network density. That’s where we are. That’s what we think. That’s why we did not make so far any final decision. We are evaluating pros and cons of each scenario, and we’ll come back to you when we will make the decision.”
The collaboration is a hedging of bets on charging infrastructure, which is the life support for the EV transformation, said Dan Ives, analyst at wealth advisory firm Wedbush Securities Inc.
“They’re just spreading their wing to make sure the 313 area code can participate in every avenue of the chagrining infrastructure,” he said. “It also plays nice in the sandbox with the Beltway.”
Ultimately, though, in the near term, for companies like GM and Ford, having access to Tesla’s already available chargers is critical.
“Right now, it’s the carrot and the stick,” he said of the joint venture. “You can’t sell cars if there is nowhere to charge them. Tesla has 12,000 charging stations up and running already. I still feel like the bread and butter is the supercharging network.”
bnoble@detroitnews.com
Twitter: @BreanaCNoble